self employed tax time rant.

[fastfredracing]

I hate this time of year, for the last couple of weekends, I have locked myself in my office for a couple of hours a day, adding up my reciepts, money in , money out etc.... This really is the absoloute worst part of small buisness ownership.
Any how, I get in this mood every year. After looking at all of the taxes I have paid. My buisness genrates sales tax, property tax on my building, home, and rental properties I have, Fed tax, state tax, local tax, tax on fuel , and then all of the taxes I paid on utilities etc...
I have to wonder, who am I working for again???
I think the government makes as much money off my ventures as I do. Will the people ever get sick and tired and stand up and just say no more?
We get taxed on every dollar that comes in, and every dollar that goes out. I have to think that with all of the revenue that I / you have created for our government , maybe I should be paid a small sum for doing all of this hard work for them
Thanks for listening

[KevinP73]

I couldn't agree more. I also get steamed over the "permits fee's" that have to be paid. Building and safety, AQMD, Air Compressor, spray booth, VOC's sprayed........it's never ending!

[911Rob]

I love being a businessman.
Tax laws in my Country were written for the businessman.

Read this for some great tips: (US written)

[dheinz]

From an email I received...


Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for peanuts anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and h ollers;
Then tax him some more,
Tax him till
He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these words
Upon his tomb,
'Taxes drove me
to my doom...'

When he's gone,
Do not relax,
Its time to apply
The inheritance tax.

Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge T ax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehi cle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, and our nation was the most
prosperous in the world.

We had absolutely no national debt, had the largest middleclass in the
world, and Mom stayed home to raise the kids.

What in the hell happened? Can you spell 'politicians?'

And I still have to 'press 1' for English !?!


GO AHEAD - - - BE AN AMERICAN!

[Dottore]

Originally Posted by 911Rob

I love being a businessman.
Tax laws in my Country were written for the businessman.

I got to find me some of that stuff you're smoking! ;-)

[imcarthur]

Originally Posted by Dottore

I got to find me some of that stuff you're smoking! ;-)

Agreed. I really loved being a GST (it's Canadian, eh) tax collector for a number of years. And it's pure hell to close your account. They barrage you with paperwork for years after.

Ian

[Christien]

Originally Posted by 911Rob

I love being a businessman.
Tax laws in my Country were written for the businessman.

Yeah, I'd like some more details too! I mean, I take advantage of a lot of write-offs that I can through the business I own, but if I consider company + personal together I still pay well over half of what I bring in to the gov't, when you add in property tax, corporate tax, sales taxes, fees and costs, etc. Because I own the company, I get to pay CPP (Canada pension plan, mandatory federal pension) twice - employee contribution and employer contribution. Sure, it's the company that pays the employer contribution, but my bonus is whatever's left at the end of the year, so in reality it still comes out of my pocket. At least I don't have to pay into employment insurance. I did a quick calculation last year and I tabulated a net of about 25-30% for myself. And I still can't get a pediatrician appointment for my daughter in under 8 weeks.

Canada: resting on our laurels since 1970.

[Christien]

But Fred, to return to your original post, I don't know what you do for a living, but adding up receipts at the end of the year, money in, money out? Don't you keep track of this stuff throughout the year? If I didn't, I'd be completely sunk for YE. I mean, that's thousands of transactions!

[911Rob]

Hey, nobody likes to pay tax, that's for sure. But as a businessman I can regulate how much I pay zee boyz; as an employee you have NO tax advantages whatsoever. Gubmint wants everyone to have a job, they pay the most taxes of all.

In all seriousness though, I have a love/hate relationship with my accountant; ha, ha; but I only pay the amount of taxes that I want to each year. I always pay, but its regulated by me, not them.

Wife and I pay ourselves about $50K/each per year and pay the personal taxes on that. Businesses always pay a little taxes too; but I sell waterfront property, so my boats a write off; I sell to millionare clientelle, so my Porsche is a write off; I sell in remote areas requiring 4x4 access, so my H1 is a write off AND now my plane is a write off too (photo ops); haven't told the accountant about the plane yet?

There are far more advantages to being a businessman than being in a job; that's what I meant by my post. Cheers.

[ginot912]

Great ideas Rob

I'm going to get some decals on my 911 track car " Ginot Construction".
All my DE's will be written off, right.

BTW thanks for the kind words a few hundred posts back.

Gino

[Christien]

Originally Posted by 911Rob

Hey, nobody likes to pay tax, that's for sure. But as a businessman I can regulate how much I pay zee boyz; as an employee you have NO tax advantages whatsoever. Gubmint wants everyone to have a job, they pay the most taxes of all.

In all seriousness though, I have a love/hate relationship with my accountant; ha, ha; but I only pay the amount of taxes that I want to each year. I always pay, but its regulated by me, not them.

Wife and I pay ourselves about $50K/each per year and pay the personal taxes on that. Businesses always pay a little taxes too; but I sell waterfront property, so my boats a write off; I sell to millionare clientelle, so my Porsche is a write off; I sell in remote areas requiring 4x4 access, so my H1 is a write off AND now my plane is a write off too (photo ops); haven't told the accountant about the plane yet?

There are far more advantages to being a businessman than being in a job; that's what I meant by my post. Cheers.

Ok, I"m with you. I thought you had something really elaborate going on!

That's pretty much exactly the same as what I do, just at lesser values - I don't own a hummer or plane Small salary, pay personal income tax on that (no escaping that, legally). The Porsche isn't yet a write off, but now that we've moved into sales and require promotion, a decal on it might at least cover track fees and maintenance. Our Honda is a company car so 100% w/o (we declare a personal use portion each year, about 10-20%, I think), as is gas, insurance, maintenance, etc. Home office so part of the mortgage, bills, insurance, etc covered there, too. It's all perfectly legal and legit, and it saves a boatload in taxation.

I see what you mean by "paying them what I want" - you dictate your own salary and keep it only as big as you need to.

You said that our tax laws were written for the businessman, but are these kinds of write offs any different anywhere else? I always assumed it was pretty much the same thing.

[imcarthur]

Originally Posted by Christien

we declare a personal use portion each year, about 10-20%, I think), as is gas, insurance, maintenance, etc.

Always be cautious with this. One year, I claimed 90% as business & they audited me. Moderation is the key.

Unfortunately/fortunately I have 100% company expenses so my write-offs have dwindled except for my home office. My closest customer is in NYC. And then all the rest are in the SE US.

Ian

[p911dad]

Fastfred, I totally understand your frustration with the US system. I once had two businesses, an aerial photography co. and an appraisal consultancy, both of which made good money for years. I also had a day job, which paid the bills and the two businesses let us seemingly pile up cash for other things. But at the end of the day, the taxes from NY State(the NY tax people must be the meanest in the world), social security and the Fed taxes convinced us to let the private stuff just die, as it was basically a wash in the end. Working for Sam.

[Christien]

Ian, I completely understand, and leave that to the accountant. With the sales we do, we generally fly well under the radar with the expenses, but I would rather spend a few extra bucks then go through the hassle of an audit. We'd come out clean, but the time it takes is simply not available these days.

[911Rob]

Ha, Ha; we're all having fun then.
Trust me, I've been very well trained by our Revenue Canada Tax Auditors. I was audited annually for many years, even had my own personal Rev Can contact person at the Harry Hays Building in Calgary. At that time my companies were doing millions in sales and showing losses at year end; Rev Can hated that and watched us very closely..... eventually the profits show up and they want their piece of it. "Development Game". I know all about feeding the wolves at the door, and I keep them well fed.

Back to comments about tax laws for the businessman; once again, simply stated you cannot get the kind of tax right offs that I get if you have a job. Things like vehicles, fuel, insurance are all paid from by after-tax dollars. My after-tax dollars are mine; they're a big difference.

I've had the same accountant for many years, he lives in Calgary and is very well known by RevCan; my wife and I strongly feel that they leave us alone because they don't want to deal with him; downside of it is that we dont really like dealing with him either? Ha.

One day it'll all get much simpler for me, but for now...... we play.

[Christien]

Originally Posted by 911Rob

Back to comments about tax laws for the businessman; once again, simply stated you cannot get the kind of tax right offs that I get if you have a job. Things like vehicles, fuel, insurance are all paid from by after-tax dollars. My after-tax dollars are mine; they're a big difference.

Amen brother.

One day it'll all get much simpler for me, but for now...... we play.

Do I hear the call of the banks and beaches of the Cayman Islands?

[Hugh R]

Used to have my own incorporated consulting biz, wrote off lots of stuff, all legal, including my gym membership as part of my corporate "Wellness" program, and my kids "allowance" as they were part time employees. Yes, I actually had them running business errands such as going to Kinkos and assembling reports.

[on2wheels52]

Perhaps there's some advantage to businesses where most of the accounts receivable are paid in cash.
Jim

[pwd72s]

Originally Posted by fastfredracing

I hate this time of year, for the last couple of weekends, I have locked myself in my office for a couple of hours a day, adding up my reciepts, money in , money out etc.... This really is the absoloute worst part of small buisness ownership.
Any how, I get in this mood every year. After looking at all of the taxes I have paid. My buisness genrates sales tax, property tax on my building, home, and rental properties I have, Fed tax, state tax, local tax, tax on fuel , and then all of the taxes I paid on utilities etc...
I have to wonder, who am I working for again???
I think the government makes as much money off my ventures as I do. Will the people ever get sick and tired and stand up and just say no more?
We get taxed on every dollar that comes in, and every dollar that goes out. I have to think that with all of the revenue that I / you have created for our government , maybe I should be paid a small sum for doing all of this hard work for them
Thanks for listening

You're describing one of the reasons I retired at age 48...

[look 171]

Then what the hell are you doing here? Its OK, I have been locked up in my office almost all day doing the same damn thing. This morning I was able to escape to the porsche swap meet in Anaheim. I too just throw the reciepts in a certain folda and deal with it at the end of the year. I think I dread it more then you or it is the other way around. Well the PPOT is my little time out. good luck It will be all over soon.

Jeff